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Question

In 1977 the Carter administration successfully negotiated the Camp David Accords. How might a peace agreement between Egypt and Israel affect the U.S. economy?

Solution

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Peace between Israel and Egypt would help bring stability to the Middle East, potentially flattening the unstable price of oil exported out of the country. Egypt was not a member of OPEC (Organization of the Petroleum Exporting Countries), but its allies were. By fostering peace between the traditionally warring nations, Carter may have attempted to open up a new line of diplomatic communication in the region as part of his larger initiative to combat the energy crisis.

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